Large US fruit firm inks $500-M investment deal with RP
By Juliet Labog-Javellana
Philippine Daily Inquirer
First Posted 01:56:00 06/29/2008
Filed Under: Economy, Business & Finance,Foreign affairs & international relations
NEW YORK CITY (VIA PLDT) -- President Macapagal-Arroyo’s business meetings here have yielded a $500-million investment from one of the US’ leading suppliers of pineapple and tropical fruits.
Ms Arroyo announced here that Libby Fruits had signed a $500-million contract for canned pineapples from Bicol and Eastern Visayas.
“In terms of new investments, just this (Friday) morning, we met with Libby’s and they (signed) an agreement with the National Development Corp. on a $500-million investment in fruit-processing,” she said in a speech at the Seminar on Financing for Philippine Infrastructure and Privatization Projects Economic Overview and Infrastructure Projects at the Waldorf Astoria.
“We hope that this is going to be coming very soon and it will give a lot of jobs to people in Bicol and maybe in Eastern Visayas as well,” Ms Arroyo told the seminar audience composed of executives of top US corporations.
The investment was covered by a memorandum of agreement signed by Trade Secretary Peter Favila and Niagara Trading Co. (NTC) Chair Michael deRose and witnessed by the President.
35-year contract
Malacañang said the MOA provides for a 35-year contract for the Philippines to supply pineapples to Libby’s.
The investment is expected to benefit 5,000 farming families in Bicol and Eastern Visayas.
Libby’s currently sources all its processed pineapple and tropical fruit from Thailand and is looking to expand its market share in North America through its investment in the Philippines.
Libby’s was one of five business calls Ms Arroyo had on the last of her two-day stay in New York, the third leg of her 10-day US trip.
She also cited the expansion of the Iqor call center, a major American outsourcing company, at the Clark Economic Zone.
In her speech at the seminar, Ms Arroyo said the Philippines was the “best value” for investment in the Asian region.
“In some parts of Asia, we fear that investors will be lured to opportunities to make a quick buck in a country that is still to institutionalize good, sound fundamentals,” she said.
Best value in Asia
“Too many quick-buck investments coming at the same time can push a country’s inflation up, seriously weaken its currency and force it to drastically cut spending on infrastructure. Not the Philippines. We are on a steady, permanent path to economic growth, stability and modernization. As we said: We are the best value in Asia,” Ms Arroyo said.
The President cited news articles which appeared about the Philippines in BusinessWeek’s Jan. 28, 2008, issue which said: “Sustained growth and sound fundamentals are prompting investors to look anew at the Philippines” and in the March/April 2008 issue of Foreign Affairs magazine which declared that “…investors have been lining up to the dynamic developments” in the Philippines.
USA Today/Our Worlds May 1, 2008, issue asserted that the “Philippines was catching the tiger economies on its way to First World status.”
“We are a good, long-term bet,” the President said.
“We don’t sell hype, no quick buck, no false gains. Just strong fundamentals, good economic stewardship and excellent returns on your investment. We are the smart, prudent place to put your money in. We are a great place to invest. We look forward to greeting you on your next investment tour to Manila,” she said.
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